The EU's anti-fraud office has begun a formal investigation into Lord Peter Mandelson, who was sacked as UK ambassador to the US over his ties to late sex offender Jeffrey Epstein. Lord Mandelson served as European trade commissioner from 2004 to 2008. The European Commission requested the European Anti-Fraud Office (Olaf) to investigate allegations of misconduct during this period two months ago. Olaf confirmed it had 'sufficient information' to initiate an investigation, but it remains unclear if this involves allegations of fraud.
Following his time in Brussels, Mandelson became the UK business secretary until 2010. Olaf's investigation will look at exchanges with Epstein during Mandelson's EU commissioner role, and its mandate includes all four years of his term, focused on staff and members of EU institutions.
Emails also surfaced concerning the eurozone crisis in 2010, including allegations that Mandelson provided Epstein with advance knowledge of an impending €500bn bailout aimed at curbing the financial crisis in Greece. Although he has not publicly commented on these allegations, sources indicate he denies any criminal wrongdoing, asserting he was not motivated by financial gain.
Olaf does not have the authority to prosecute; it will refer any criminal elements to the European Prosecutor's Office. Its role includes investigating fraud related to the EU budget, as well as corruption and serious misconduct within EU institutions. Olaf can recommend various sanctions, including judicial and financial actions, potentially revoking Mandelson's pension.
The investigation comes in the wake of controversies linking Mandelson's friendship with Epstein to market-sensitive information during his tenure as business secretary in 2009. He was dismissed as UK ambassador in September 2025 when his connections to Epstein became publicly scrutinized. The ongoing scandal continues to impact UK politics, with former high-ranking officials expressing concerns over the appointment process that led to Mandelson's ambassadorship.
Following his time in Brussels, Mandelson became the UK business secretary until 2010. Olaf's investigation will look at exchanges with Epstein during Mandelson's EU commissioner role, and its mandate includes all four years of his term, focused on staff and members of EU institutions.
Emails also surfaced concerning the eurozone crisis in 2010, including allegations that Mandelson provided Epstein with advance knowledge of an impending €500bn bailout aimed at curbing the financial crisis in Greece. Although he has not publicly commented on these allegations, sources indicate he denies any criminal wrongdoing, asserting he was not motivated by financial gain.
Olaf does not have the authority to prosecute; it will refer any criminal elements to the European Prosecutor's Office. Its role includes investigating fraud related to the EU budget, as well as corruption and serious misconduct within EU institutions. Olaf can recommend various sanctions, including judicial and financial actions, potentially revoking Mandelson's pension.
The investigation comes in the wake of controversies linking Mandelson's friendship with Epstein to market-sensitive information during his tenure as business secretary in 2009. He was dismissed as UK ambassador in September 2025 when his connections to Epstein became publicly scrutinized. The ongoing scandal continues to impact UK politics, with former high-ranking officials expressing concerns over the appointment process that led to Mandelson's ambassadorship.
